Which of the following types of interest cost incurred in connection with the purchase or manufacture of inventory should be capitalized as a product cost?
A)purchase discounts lost
B)interest incurred during the production of discrete projects such as ships or real estate
Projects
C)interest incurred on notes payable to vendors for routine purchases made on a repetitive
Basis
D)interest on a building mortgage

Question

Quizplus · Accepted Answer

Interest incurred during the production of discrete projects like ships or real estate projects should be capitalized as a product cost because it is directly attributable to the production process.

Which of the Following Types of Interest Cost Incurred in Connection